Published date: 15 January 2025
Last edited date: 15 January 2025
Open future opportunity - This means that the buyer is not yet ready to invite bid applications but early notification has been provided and some dialogue may be possible.
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Approach to market date: 1 April 2025
Contract summary
Industry
Administrative services for business operations - 75112000
Location of contract
Any region
Value of contract
£8,000,000
Procurement reference
tender_478040/1441051
Published date
15 January 2025
Approach to market date
1 April 2025
Contract start date
1 April 2026
Contract end date
31 March 2031
Contract is suitable for SMEs?
Yes
Contract is suitable for VCSEs?
No
Description
In March 1995, following privatisation of the coal industry, HM Government inherited a legal obligation to certain former employees of the coal industry to fulfil a contractual legacy entitlement to an amount of solid fuel or cash-in-lieu of that fuel.
The rules governing the entitlements are contained in fuel agreements originally put in place in the 1980s between British Coal Corporation and the Mining Unions and amended from time to time until privatisation.
The vast majority of qualifying individuals now choose the cash-in-lieu option (c22,000) with around 2,700 (October 2024) still receiving solid fuel. This number is declining in line with mortality rates.
The supplier shall manage all aspects of the National Concessionary Fuel Scheme.
It is a demand led contract based on decreasing numbers with a number of variables and uncertainties. A flexible service which allows for a decrease of the business and unpredicted changes in requirements is required.
The full requirements will be set out in the specification but will include:
- Payment of cash benefits - quarterly totalling c£28,000,000 (declining year on year)
- Management of entitlements through annual certificates
- General administration of services to Beneficiaries including correspondence relevant to the services
- Effective liaison with the solid fuel contractor - providing instructions to increase, reduce or stop solid fuel deliveries.
- Participation in the National Fraud Initiative; management and pursuit of fraud and error and overpayments/irrecoverable losses
- Management of data protection; cyber security and equalities compliance
Concessionaires are based in coalfield communities in the UK with high concentrations of individuals in South Wales and Northern England.
Expected timelines for this procurement via an open procurement:
Invitation to Tender - April 2025
Tender Closes - May 2025
Contract Award - August 2025
Contract Transition/Mobilisation - September 2025 - March 2026
Please note these timelines are indicative and may be subject to change.
This contract will be a 5 year contract, with an optional 3 year extension built into the contract. Duration in months: 60 months plus an optional extension of 36 months.
Total Value (excluding VAT) and including the optional extension period is £8 million.
How to apply
Follow the instructions given in the description or the more information section.
About the buyer
Contact name
Waseem Rana
Address
Department for Energy Security and Net Zero (DESNZ), 3-8 Whitehall Place
London
SW1A 2EG
England
Email
waseem.rana@energysecurity.gov.uk
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